Trade and Industry Minister says SA plans to cast net wider after Trump hikes tariffs

JOHANNESBURG - Trade and Industry Minister Parks Tau says South Africa plans to cast its net wider in an effort to diversify export destinations.

This follows disruptions to global trade triggered by US President Donald Trump’s decision to impose further tariffs on trade partners.

During his "Liberation Day" speech earlier in the week, Trump announced a 10% universal tariff on imports, barring some exceptions.

South Africa was slapped with a 31% duty.

Trade and Industry Minister Parks Tau and International Relations Minister Ronald Lamola held a joint press conference responding to global developments in Midrand on Friday.

The globe is now trying to reconfigure trade relations.

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For South Africa this means targeting other markets across Africa, as well as in Asia, Europe and the Middle East.

Trade and Industry Minister Parks Tau says this has always been part of South Africa’s industrial strategy in what would essentially reduce dependency on single destination markets for the country’s exports.

He also says African trade leaders should not waste this crisis and ensure regional trade is strengthened.

“Continuously, we have to ensure we diversify and expand the people and countries with which we trade but also take into account the global experiences around the disruptions to supply chains during the covid pandemic – as a country, we have to begin to think about how we diversify our own trade and supply chains.”

Tau says the African Continental Free Trade Area will help boost regional trade.

The agreement established by the African Union in 2018 to create a single continental market for goods and services across Africa aims to enhance intra-African trade by reducing tariffs and eliminating trade barriers.